How to Set Up Cost Centres

Cost centres are departments that are responsible for costs and income. The chart of cost centres is similar to the dimension information for the general ledger. You can set up the chart of cost centres in the following ways:

• Transfer dimension values in the general ledger to the chart of cost centres. You can make any necessary adjustments after the transfer.
• Create a new chart of cost centre that is independent of the general ledger or add a new cost centre to an existing chart of cost centre. You must create each cost centre individually.

To transfer dimension values in the general ledger to the chart of cost centres

1. Set up a dimension to be the cost centre dimension in the Update Cost Acctg. Dimensions window. Only the values from this dimension are transferred.
2. Choose the icon, enter Chart of Cost Centres, and then choose the related link.

3. On the Actions tab, in the Functions group, choose Get Cost Centres from Dimension to transfer dimension values to the chart of cost centres. The function transfers the dimension values that you defined in step 1.

   NOTE

   You can set up the Align Cost Centre Dimension field to define a one-way synchronisation of dimension values from the general ledger to the chart of cost centres. You cannot define a synchronisation of the chart of cost centres to dimension values from the general ledger.

The chart of cost centres now contains all specified dimension values from the general ledger and includes titles and subtotals.

To create new cost centres in the Chart of Cost Centres window

You can set up and maintain cost centres in either the Cost Centre Card card or in the Chart of Cost Centres window. In this procedure, you set up cost centres in the Chart of Cost Centres window.

1. Open the Chart of Cost Centres window in edit mode.
2. In the Code field, enter the cost centre code. All cost centres must have a code.
3. In the Name field, enter the cost centre name.

4. Choose the drop-down arrow in the Line Type field to specify the purpose of the cost centre.

   • For cost centres of the Total type, you must fill in the Totalling field. Use the or operator, which is a vertical line (|) to set ranges of cost centers.
   • For cost centres of the End-Total line type, this field is filled in automatically when you use the indent function.
5. Fill in the Sorting Order and Cost Subtype fields.
6. Choose the next empty line to create a new cost centre, and then repeat steps 2 through 5.
7. After you have set up all the cost centres, choose the Indent Cost Centres action. Choose the Yes button.

See Also

Accounting for Costs
Setting Up Cost Accounting
Terminology in Cost Accounting
About Cost Accounting
Working with Dynamics NAV

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